Al Rawabi to invest Dh80m

Al Rawabi to invest Dh80m

Dubai - This year the dairy producer will add a new modern automated facility, which will help the company increase output to 70 per cent from the current 30 per cent.



By Abdul Basit

Published: Thu 24 Mar 2016, 7:59 PM

Al Rawabi has planned to invest Dh80 million in 2016 for the expansion of its production in addition to increase market reach by entering into new markets, top officials of the company announced on Wednesday during a news conference.
This year the dairy producer will add a new modern automated facility, which will help the company increase output to 70 per cent from the current 30 per cent.
Currently, the company produces 175,000 litres of fresh juice products and 325,000 liters of dairy products daily. Al Rawabi invested Dh172 million since 2013 to expand facilities and improve cold storage infrastructure.
Al Rawabi chairman Abdallah Sultan Al Owais said: "We have an ambitious road ahead and our mission is to be a Mena brand by 2020 with presence in key markets across the region." The company recorded a 15 per cent growth in 2015 more the double the industry growth last year. "The company is confident that it will grow by 15 per cent in 2016," chief executive officer Dr Ahmed El Tigani said.
Al Rawabi chairman Abdallah Sultan Al Owais said: "We have an ambitious road ahead and our mission is to be a Mena brand by 2020 with presence in key markets across the region."
Highlighting the company's focus on enhancing its footprints across regional markets, Dr El Tigani, said: "In the next three to four years, we will be present in all GCC countries, apart from increasing the brand's visibility in more African countries. The aim is to double the turnover from 2015 levels by 2020 and reach a customer base of over 15,000 stores by the end of 2016 from the current 12,500."
He added that Al Rawabi will continue to enhance reach by adding new export markets and in 2016; it has plans to enter Bahrain. While the main operations are based in the UAE, the company entered Kuwait in 2015. Al Rawabi directly distributes to Oman and Qatar and exports its products to Iraq, Libya, Sudan and Yemen.
"We are also conducting a feasibility study to explore setting up an operations base in Saudi Arabia. On our home turf in the UAE, we are also currently in planning and feasibility study phase for a new dairy farm in Abu Dhabi," Dr El Tigani said, adding that Al Rawabi is also looking to grow alfa alfa hay in an African country to close the production cycle and minimise feeding cost.
- abdulbasit@khaleejtimes.com


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